Conroy rejects $90 billion+ NBN claims

Daniel Hurst

The Gillard government has rejected claims the cost of the national broadband network will more than double to $90 billion, saying the Coalition was a ''fact-free zone''.

As the opposition prepares to release its long-awaited broadband policy as early as this week, News Ltd has reported that analysis contained in the document predicts the cost of the government's flagship high-speed internet project could exceed $90 billion.

Minister for Broadband and Comunications Senator Stephen Conroy is sticking to the government's deadline on media reforms. Photo: Colleen Petch

It also claimed the project's completion may be delayed by four years to 2025.

Communications Minister Stephen Conroy denied the claims and played down previous revisions to the rollout schedule and cost.

''The corporate plan audited by the Auditor-General is produced each year and what we've seen in that corporate plan is $37.4 blllion is the cost of building the NBN, not as today the Coalition are claiming $90 billion,'' he told ABC Radio's AM program on Monday.

''The Coalition are a fact-free zone. They don't have any facts to support these claims. They rely on misleading statistics and misleading data to try to make these scare campaigns.''

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Senator Conroy dismissed long-running opposition and business calls for a cost-benefit analysis of the NBN rollout, saying the costs were ''black and white'' and revenue over time would cover the expense.

''The cost-benefit analysis argument works if you claim the NBN isn't making money. The NBN corporate plan clearly states the NBN makes money over time; over the life of the project it makes its money and the Australian taxpayers get paid back every cent plus interest.''

Senator Conroy claimed the Coalition's policy, which would see high-speed fibre rolled out to ''nodes'' rather than directly to each home, would lead to steep costs for people to then connect their house to the system.

''In the UK, BT – Malcolm Turnbull's favourite company; he quotes them all the time – are charging up to $5000 to actually connect fibre to the home,'' he said.

Comment is being sought from opposition communications spokesman Malcolm Turnbull, who has previously vowed to cut rollout costs and timeframes by shifting to a fibre-to-the-node project instead of the government's fibre-to-the-premises approach.

''There is real concern within the business community at the potential for further delays to the NBN rollout,'' the groups's chief executive, Innes Willox, said on Sunday.

''NBN Co recently made significant downgrades to the June 30 premises-passed forecasts with further updates promised in coming months. A change of policy may take up to 18 to 24 months to implement given the complex legal, commercial and policy issues involved.

''Both sides of politics need to articulate how they will ensure momentum in the NBN rollout, giving businesses the confidence to plan around a clear and certain timetable for when they can access services.''

The Coalition has made similar claims about cost and time blowouts in the past.

Last month, Mr Turnbull told Fairfax Media's Breaking Politics program: ''If this NBN were to proceed with its construction on the basis of the government's plan, it would be likely in my view, and it's not an uninformed view, to take over 20 years to complete, and a hundred billion dollars.''